Hedge Funds Beat S&P First Time in Decade

May 9, 2018 James Heinsman Hedge Fund News

For the past several years we have been watching hedge funds closing down and returning what’s left of their investors’ money. High fees and low yields have played fast and furious with the reputation of hedge funds, painting them as poor choices for savvy investors.

So it may come as a surprise to hear that in 2018 hedge funds are making a comeback, and doing better than they have in about ten years.

Hedge funds so far this year are outperforming the S&P 500 with about 0.4 percent returns. That is the first time since the 2008 financial crisis that the industry did better than the index.

The positive performance is attributed to a marketplace that has been highly volatile, a rise in energy prices and some other good bets by managers. Total return for the year for the $3.2 trillion investment sector was 0.39 percent, compared to S&P’s 0.38 for the first third of 2018.

“The industry continues the process of evolving transitional politics and economics creating long and short opportunities across a wide continuum of specialized exposures and industries, including Fixed Income/interest rate-sensitive equities, retail, M&A, technology and blockchain,” HFR President Kenneth J. Heinz said. “This powerful process is likely to continue to drive performance through mid-2018.”

Kenneth J. Heinz, S&P 500,

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